The Relationship Between Auditor's Opinions, Corporate Governance and Accounting Information Quality

Abstract:     
Optimal system of the corporate governance makes sure that corporations use their own assets effectively and also they consider the interests of the extensive range of stakeholders and community. Based on theoretical topics clients who have stronger corporate governance provide the more qualitative accounting information. Therefore, with increasing the quality of accounting information, the probability of occurrence of fraud and irregularities financial statements will be reduced and the representation of the unqualified opinions seem Logical. In this study, the effect of the quality of the mechanisms of the corporate governance on the independent auditor's opinion has been investigated. The hypothesis of this study has been investigated through investigating of the independent Auditor's Opinion for 90 accepted companies in the Stock Market, related to 8 year time period with considering the governance rate of these corporate. The results of this investigation indicated that significant relationship between corporate governance in the corporate with the moderate governance rate and weak one and the representation of unqualified opinion auditors. But we don’t see such a relationship for clients with strong governance rate and the representation of the unqualified opinion.

Number of Pages in PDF File: 10

Keywords: Corporate Governance, Independent Auditing, Auditor's Opinion

working papers series